Xcel Energy received approval from the Minnesota Public Utilities Commission on Thursday to extend operations of the Prairie Island nuclear plant through the early 2050s. It's a major step toward continuing to provide reliable, carbon-free energy for customers across the Upper Midwest.
"As the only 24/7 carbon-free resource currently available, nuclear energy will play a foundational role in meeting our customers' growing energy demand, supporting economic development, and ensuring energy security in the Upper Midwest," said Ryan Long, president, Xcel Energy Minnesota, North Dakota and South Dakota. "We appreciate the Commission's continued recognition of nuclear energy's importance and the thoughtful input of many stakeholders, including the Prairie Island Indian Community, the City of Red Wing and Goodhue County."
Following the Commission's unanimous vote to approve Xcel Energy's application for increased storage of spent fuel at the site, the company plans to request a 20-year extension of the plant's operating licenses from the U.S. Nuclear Regulatory Commission in 2026. The federal review process is extensive, typically taking 18-24 months, and is focused on ensuring safe and reliable operations.
Prairie Island has two units that together produce 1,100 megawatts of electricity, enough to power more than 1 million homes across the Upper Midwest. The units' current operating licenses expire in 2033 and 2034.
Boost to local economy
Xcel Energy's nuclear plants are economic drivers for the communities they operate in. After 50 years of operations, the Prairie Island plant holds a significant role in the regional community and economy.
Xcel Energy is one of the largest employers in Goodhue County. Its team members call the area home, benefiting local schools and volunteer organizations.
"Xcel Energy is a great employer, and today's decision helps ensure hundreds of well-paying jobs remain in our community for many years to come," said Red Wing Mayor Gary Iocco. "Not only does the Prairie Island plant represent 42% of Red Wing's tax base, Xcel Energy employees contribute to our city's vitality through their philanthropy, giving their time and effort to making Red Wing a great place to live and work."
Nuclear energy delivers for customers
As electricity demand increases from business expansion and electrification of homes and vehicles, nuclear energy has emerged as a critical resource. Xcel Energy operates two nuclear plants, Prairie Island and Monticello.
Xcel Energy recently announced it will extend the operation of the Monticello plant through 2050 to support its clean energy vision, following the renewal of the plant's operating license by the U.S. Nuclear Regulatory Commission and approval from the Minnesota Public Utilities Commission, following a similar track that the Prairie Island plant is now on.
"Today's approval from the Public Utilities Commission sends a message to our nuclear team that the work they do to power our customers' lives is valued throughout the state," said Werner Paulhardt, site vice president of the Prairie Island plant. "We're proud of the role our team has in delivering safe, reliable, carbon-free electricity throughout the Upper Midwest."
Xcel Energy is currently delivering roughly $250 million in federal tax credits from the production of nuclear energy at the Prairie Island and Monticello plants back to its customers across the Upper Midwest.
Learn more about Xcel Energy's nuclear fleet.
About Xcel Energy
Xcel Energy (NASDAQ: XEL) is a leading energy provider, dedicated to serving millions of customers with excellence. We make energy work better for customers, helping them thrive every day. That means always raising the bar delivering better service and providing more reliable, resilient and sustainable energy.
We are committed to leading the clean energy transition, meeting our customers' need for more, cleaner power, while keeping bills as low as possible. Because the people we serve depend on us to power their lives.
Headquartered in Minneapolis, we work every day to generate and distribute electricity and gas to customers across eight states: Minnesota, Colorado, Wisconsin, Michigan, North Dakota, South Dakota, New Mexico, and Texas. For more information, visit xcelenergy.com or follow us on X and Facebook.
